From largest to down, why HERTZ bankruptcy?

As you know that it has happened about Hertz, who is the big car rental company in the US, has been filing for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Delaware since May 2020 from the Covid-19 pandemic. So we are going to have many reasons that HERTZ bankruptcy from the virus crisis. Which ones? Let's see the details!!

No Fly, No customers

Hertz has comparable shares to Enterprise in the U.S. airport rental market. When there is COVID-19, it has significantly impacted rental car companies that rely on airport business. Because of Covid-19 caused airline travel to stop for all services around the Uncle Sam soil before the jet age, according to Airlines for America, an industry group that represents the largest U.S. carriers.

How to rent is too tough !!

Hertz had to contend with tough competition in the car-rental space, in addition to the onslaught from Uber and Lyft. Customers preferred the ease of use with car-sharing apps. There wasn’t a need to take the time to fill out long and one-sided contracts, wait for your car then have to drive it yourself in an unfamiliar location. Compared to this experience, it's much more convenient to open an app, request a ride, and get whisked to your location.

Cities Lockdown

Although there weren't many people to rent in the U.S. airports there are many cars for using when your own car to fix. Sadly, there are lockdowns from many cities that they make people not to go out. No money comes, Hertz would die slowly!!

Leasing operation failure

The debt was just too high, and Hertz failed to make payments on their leasing operations. But, before declaring bankrupt, Hertz asked for a government bailout, which was rejected. One big reason was Carl Icahn, a special economic adviser on financial regulation to U.S. President Donald Trump, who was worth US$18 Billion by himself.